The provision of a gift to an employee at Christmas time may be a minor benefit that is an exempt benefit, where the value of the gift is less than $300.

Where a Christmas gift is provided to an employee at a Christmas party that is also provided by the employer, the benefits are associated benefits, but each benefit needs to be considered separately to determine if they are less than $300 in value.

If both the Christmas party and the gift are less than $300 in value and the other conditions of a minor benefit are met, they will both be exempt benefits.

The treatment as separate benefits is a softening of the Australian Taxation Office attitude, compared to earlier years.